Royal Mail shares rose in early trading following an upbeat trading statement and assurances of “progress” in ongoing talks with unions over pay and pensions.
Royal Mail’s share price was up 1.7% at 13.04 following after it revealed parcel volumes in the nine months to the end of December were up 6%, with 149 million parcels handled over the Christmas trading period alone.
Letters performance was better than expected with addressed letter volumes down just 5%. GLS delivered another strong performance with volumes and revenue up 10%. Overall, Group revenue was up 2%.
Commenting on the latest trading numbers, Moya Greene, CEO at Royal Mail, said: "Given our performance to date, we expect to see broadly similar volume and revenue trends in UK parcels and letters for the full year as in the nine months. In GLS, we expect underlying revenue growth for the full year to be broadly in line with the first half.”
Responding specifically to union negotiations she stated: "We have continued to make progress in talks with our unions on pay, pensions and the other issues under discussion. We have agreed the fundamental principles on some of the key issues and talks are ongoing to finalise these and other areas.
“We believe we can reach agreement on an affordable and sustainable pension solution and a pay deal that will enable us to continue to innovate and grow."